Extreme Networks Inc (EXTR)

Gross profit margin

		Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Gross profit (ttm)	US$ in thousands	630,831	730,626	802,663	800,948	754,720	694,492	663,912	641,043	629,938	636,847	624,302	605,708	585,123	544,613	507,135	515,614	517,839	536,195	563,779	556,407
Revenue (ttm)	US$ in thousands	1,117,793	1,206,801	1,327,505	1,350,661	1,296,105	1,216,506	1,171,259	1,134,452	1,103,793	1,100,623	1,066,015	1,024,318	989,353	920,965	877,599	903,377	925,180	965,663	1,008,491	996,267
Gross profit margin		56.44%	60.54%	60.46%	59.30%	58.23%	57.09%	56.68%	56.51%	57.07%	57.86%	58.56%	59.13%	59.14%	59.14%	57.79%	57.08%	55.97%	55.53%	55.90%	55.85%

June 30, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $630,831K ÷ $1,117,793K
= 56.44%

Extreme Networks Inc's gross profit margin has shown some fluctuations over the past several quarters, ranging from a high of 60.54% in March 2024 to a low of 55.53% in March 2020. Despite these fluctuations, the company has generally maintained a relatively stable gross profit margin above 55% over the period analyzed.

The gross profit margin measures the efficiency of the company's production and pricing strategies, indicating the percentage of revenue retained after accounting for the cost of goods sold. A higher gross profit margin suggests that the company is effectively managing its production costs and pricing its products competitively.

Extreme Networks Inc's gross profit margin has generally been above the industry average, reflecting its ability to generate profits from its core business activities. However, the slight downward trend in recent quarters may indicate increased cost pressures or pricing challenges that could impact profitability if not addressed.

Overall, further analysis of the company's cost structure, pricing strategies, and industry dynamics is recommended to better understand the factors influencing Extreme Networks Inc's gross profit margin performance.